Nancy Hamant's response to James Nash/Columbus Dispatch re: Medicare Advantage

From Nancy Hamant, November 10, 2009

Mr. Nash:

Many STRS retirees are very apprehensive about STRS moving into Aetna Medicare Advantage Programs starting January 2010. Why -- because many research studies and articles (including one in Consumers Reports) have cited the high administrative costs in Medicare Advantage Programs. Those costs range from 13% up to 18%, whereas, regular Medicare has administrative costs of 5% or less. Also, the Medicare Advantage programs receive subsidies from the federal government via increased monthly premiums paid by those enrolled in Medicare.

It appears that Medicare enrollees are paying profits to private insurers who offer Medicare Advantage programs. Such a convoluted process needs to be cleaned up! So what is needed, is not only a reduction of subsidies to private insurers to guarantee their profits, but in addition, strong regulations to ensure that Medicare enrollees receive adequate and cost-effective services!

Sincerely,
Nancy B. Hamant
Maineville, OH

Response from James Nash, 11/10/09:
Interesting points. Thanks for the information and your thoughts.